Which of the following is an output of risk assessment process?
Click on the arrows to vote for the correct answer
A. B. C. D.B.
The output of the risk assessment process is identification of appropriate controls for reducing or eliminating risk during the risk mitigation process.
To determine the likelihood of a future adverse event, threats to an IT system must be analyzed in conjunction with the potential vulnerabilities and the controls in place for the IT system.
Once risk factors have been identified, existing or new controls are designed and measured for their strength and likelihood of effectiveness.
Controls are preventive, detective or corrective; manual or programmed; and formal or ad hoc.
Incorrect Answers: A: Risk identification acts as input of the risk assessment process.
C: This is an output of risk mitigation process, that is, after applying several risk responses.
D: Residual risk is the latter output after appropriate control.
Risk assessment is a crucial process in any organization's risk management framework. Its main objective is to identify potential threats, vulnerabilities, and impacts on the organization's assets and to determine the likelihood and impact of those risks. Based on the results of the risk assessment, appropriate risk responses can be developed to mitigate, avoid, transfer, or accept the risks.
The output of the risk assessment process is crucial in guiding the organization in determining the appropriate response to the identified risks. The following are the options given in the question and their explanations as outputs of the risk assessment process:
A. Identification of risk: This output refers to the identification of potential risks that could impact the organization's assets. The risk assessment process should identify and document all the risks that could have a significant impact on the organization's objectives, such as financial loss, reputation damage, regulatory violations, or operational disruptions.
B. Identification of appropriate controls: The identification of appropriate controls is another output of the risk assessment process. The risk assessment process should identify and evaluate the effectiveness of existing controls and recommend additional controls that could be implemented to reduce the likelihood or impact of the identified risks.
C. Mitigated risk: This output refers to the outcome of the implementation of risk responses or controls to reduce the likelihood or impact of the identified risks. If the risk assessment process identifies a risk that has been mitigated or reduced to an acceptable level, it can be considered a positive output.
D. Enterprise left with residual risk: This output refers to the risks that are left after applying risk responses or controls. Residual risks are the risks that the organization has decided to accept or cannot be mitigated. They must be monitored and managed to ensure they do not exceed the organization's risk tolerance.
In summary, the output of the risk assessment process includes the identification of risks, the identification of appropriate controls, and the determination of mitigated and residual risks. The organization can use this information to develop appropriate risk responses and to manage risks to an acceptable level.